What do you mean by consumer lending?
Consumer lending is the category of financing centered on individual and household consumers. It includes home and auto loans, as well as personal loans extended to people who use the funds for individual or family purposes.
How does a consumer loan work?
The most common consumer loans come in the form of installment loans. These types of loans are dispensed by a lender in one lump sum, and then paid back over time in what are usually monthly payments. The most popular consumer installment loan products are mortgages, student loans, auto loans and personal loans.
Does consumer lending include mortgages?
Consumer credit includes:
Mortgage loans. Home equity lines of credit.
How do I become a consumer lender?
You need at least a bachelor’s degree in business finance or a related discipline. You may be able to skip educational requirements with enough work experience in similar responsibilities. Most employers offer on-the-job training to acquaint you with the job’s duties.
What is consumer finance financial Services?
Consumer finance refers to the borrowing and saving. choices that people (i.e., households) make over time. These financial decisions can be complex and can affect. financial well-being both now and in the future.
What is the difference between business loan and consumer loan?
For business loans, they can use equipment, fixtures or furniture as collateral. Consumer loans do not usually require a guarantor. … The term of the business loan is generally shorter than the consumer loan. The interest rate for the business loan is usually higher than that for the consumer loan.
What are the different types of consumer finance?
The major consumer financial markets include mortgage lending, student loans, automobile loans, credit cards and payments, payday loans and other credit alternative financial products, and checking accounts and substitutes.
What are examples of consumer loans?
A consumer loan is any loan or line of credit a consumer receives from a creditor. Common consumer loans are home mortgages, auto loans, credit cards, personal loans, student loans, home equity, and HELOC loans.
What is a consumer mortgage loan?
Consumer mortgages are a type of loan from a bank or lender to help you finance the purchase of a home. Commercial real estate loans, on the other hand, lend business owners a sum of money to invest in their business.
What does lending require consumer protection?
The Consumer Credit Protection Act Of 1968 (CCPA) protects consumers from harm by creditors, banks, and credit card companies. … The CCPA requires that the total cost of a loan or credit product be disclosed, including how interest is calculated and any fees involved.